Sept. 30, 2016 —
We determined whether DoD was constructing facilities in accordance with legislative authorities (Federal law) and if DoD was providing adequate quality assurance and oversight of military construction projects at Camp Lemonnier, Djibouti. We nonstatistically selected 2 of 17 projects, P920, Bachelor Enlisted Quarters and P220, Ammunition Supply Point, with combined estimated costs of $65.2 million, for audit. This is one in a series of reports on military construction (MILCON) projects at Camp Lemonnier, Djibouti.
Naval Facilities Engineering Command (NAVFAC) Atlantic constructed the Bachelor Enlisted Quarters project in accordance with the Federal law. However, NAVFAC officials did not obtain Navy approval and initiate the congressional notification process for the Ammunition Supply Point project scope changes as required by Federal law and Navy guidance. The scope changes were needed because the project planner did not properly apply explosives safety standards when developing the DD Form 13911, which incorrectly combined the inert storage facility and receive, segregate, storage issue functions as one primary facility. The program manager stated that approval was not obtained and congressional notification was not initiated for the scope changes because she applied the Federal law and Navy requirements to the total Ammunition Supply Point project scope and not to the scope for each primary facility. Although the scope changes will ultimately result in a facility that meets mission requirements, unapproved scope changes to the other 15 FY 2010 through FY 2013 projects could result in construction of facilities that are not consistent with the intent of the Navy, Office of the Secretary of Defense, and Congress. In addition, officials at NAVFAC Camp Lemonnier, Djibouti, did not provide adequate oversight for the Bachelors Enlisted Quarters and Ammunition Supply Point projects. Specifically, the officials did not establish and implement adequate quality assurance oversight plans or maintain contract files in accordance with the Federal and Navy guidance. This occurred because the Facilities Engineering and Acquisition Division Director, construction managers, and quality assurance representatives stated that they did not see value in developing quality assurance plans and did not have procedures for archiving old contract files. The Director stated that maintaining contract files was secondary to construction completion.
As a result, there is an increased risk that construction will not meet contract requirements and that DoD will not receive what it paid for. Further, without complete contract files, DoD may not have adequate information in the event of disputes or litigation. Additionally, because of the constant turnover of contracting officials and QA representatives at Camp Lemonnier, the lack of complete contract files could limit the oversight ability of personnel subsequently assigned to manage and oversee contracts.
We recommend the Commander, NAVFAC Atlantic, submit a request for approval to reduce the scope of the inert storage facility; build the receive, segregate, storage, issue as a new primary facility; and initiate the congressional notification process for the Ammunition Supply Point scope changes. We also recommend that the Commander, establish local policies and procedures for contracting officials and quality assurance representatives to execute their roles and responsibilities and implement a process to consistently maintain complete contract files.
Management Comments and Our Response
The Commander, Naval Facilities Engineering Command, responding for the Commander, Naval Facilities Engineering Command Atlantic, did not address the recommendations to initiate the congressional notification process and request approval from Navy officials for the scope changes made to the Ammunition Supply Point project. Comments from the Commander addressed the recommendations to establish and implement a consistent process to maintain contract files; however, the Commander did not address the recommendation to establish procedures for contracting officials and quality assurance representatives in executing their roles and responsibilities. We request the Commander, NAVFAC Atlantic, provide comments in response to this report.
1 DD Form 1391 is used to request military construction authorization and funds from Congress.
This report is a result of Project No. D2014-D000RE-0157.000.